Saturday, July 24, 2010

Warren Buffet principle

Wow.It's weekend.

Ape plan korang sumer? I japgi nak pergi Jusco Maluri kot. Restock bahan keperluan rumah. Hehe.

Hmm i'm so hungry. Haha. Eating out la hari ni. Best2.

Dok baca various articles bout stock investment.

Btw, ni ada investment principle of Warren Buffet. Just for my reference and for sharing.

Do you know this man? Kalo sape tak kenal tu...Warren Buffet is one of the most successful investors in the world. He's ranked the third wealthiest person in the world as of 2010.
Memang legend la..Sape tak kenal dia kan.

So this is the article.

Stock investments should be looked at in the same way as buying a business. The stock investor is really buying a tiny share or partnership and should apply the same principles that they would in buying a business – the Benjamin Graham approach:

1. The company should be soundly managed. Tests of good management include:

2. The company has demonstrated earning capacity with a likelihood that this will continue. Tests of earning capacity include:

3. The company should have consistently high returns. Warren Buffett would look at both:

4. The company should have a prudent approach to debt.

5. The businesses of the company should be simple and the investor should have an understanding of the company.

See case studies

6. Assuming that all these thresholds are satisfied, the investment should only be made at a reasonable price, with a margin of safety. This is always a matter for independent judgment by the investor but it is relevant to consider:

8. Investors need to take a long term approach.

Hmm..okla. Nak siap2 dah ni. Banyak gak nak beli harini. Including formula milk Sofea. Dia skang minum Enfapro A+. So far memang ok n takde ape alergic, BUT sangat la expensive. Huhu.Takpela, demi baby tersayang.=)


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